Annual Survey of LC Law & Practice

The Institute of International Banking Law & Practice

15-16 March 2018

Charlotte, NC

Americas Annual Survey 15 March

8:30-9:00

10:45-11:15

Americas Annual Survey of LC Law & Practice The Learning Center at 3 Wells Fargo Center

401 S Tryon St. • Charlotte, NC • 28202

11:15-1:00 LC Practice Issues

Registration and Check-In

Networking Break

9:00-10:45 Digitization and the Future of LCs • Unlocking Blockchain for Trade

- What are the current issues for implementation? - What is the likely impact? - Who is pushing for it?

• Fintech: What is it? What impact will it have for trade?

• Revision of the eUCP: who wants it? Is this an end run around revision of UCP600? Does the ICC’s “NO” really mean “no”?

• URBPO: Can a revision of the rules breathe life into BPO?

• TT Reimbursement: Is it a bank to bank reimbursement? Deutsche Bank

• Factoring & Trade: Its impact on LC operations and issues for LC banks

• Notices: “Send” or “Received”: Is there a real difference?

- Dishonour - Change of Address - Non Extension - Other Notices

• Is an agreement in advance to pay funds a transfer a letter of credit? Banco del Austro

• Fax Presentments under Direct Pay Standby LCs: Should fax presentments be allowed?

1:00-2:00 Lunch

2:00-3:30 ICC OpinionsReviewing 2017 Final Opinions and Previewing 2018 Draft Opinions -- Are they sound? Analyzing the most significant and controversial, including:

• Dishonour of electronically generated custom’s export declaration because not authenticated: TA865 (Nov. 2017)

• Calculation of maturity date: TA 871 (Nov. 2017)

3:30-4:00

4:00-4:45 “Conflict” in UCP600, ISBP, and in the ICC Opinions

Networking Break

• Tolerance and total: TA875 (Nov. 2017)

• Government required certificate of origin: TA864 (Nov. 2017)

• Short shipment in 8 containers: TA869 (April 2017)

• What does UCP600 say about conflict and inconsistency? See the issues in Swanhill: Name of Beneficiary; Number of Guarantee; and Invoice Number.

• What do the recent ICC Opinions say about “conflict”? Do they conflict with one another?

• Do the ICC Opinions reflect practice on technical discrepancies?

• What weight are ICC Opinions given regarding conflict by banks? By judges?

4:45-5:30 LC Case Study: Oral Statement by Confirmer that Documents “in order” after Cure & Re-Presentation

• What are the issues?

• Does the beneficiary have any rights?

5:30-6:00 Summary of Critical IssuesCritical issues regarding law and practice will be summarized and final comments solicited.

6:00 Cocktail Reception

Americas Annual Survey 16 March

9:00- 10:00

10:30-12:15

Global Survey

Trade Based Financial Crime Compliance

10:00-10:30 Networking Break

12:15-1:15 Lunch

1:15-1:45 Standby & Independent Guarantee Briefing • The 2017 cases: What explains the significant increase in litigation?

An Overview of the Issues

• ISP98 Official Commentary 2nd Edition – Analyzing 20 Years of ISP98 Use

• DCW: The Top Issues Impacting Commercial LCs in 2017 and a Status Report

• SWIFT Update: Preparing for “Go Live” MT 700 changes in November 2018

• TBFCC Certification: What you should know

• BAFT’s TBML Report & Wolfsberg Group Paper: Key Findings & Reactions

• Bank Refusals due to names appearing on Internal Proprietary Lists (so-called “Hot Lists”), although they are not OFAC sanctioned parties

• Correspondent Banks: Reviewed

• Is Import Financing an issue for Trade?

• What documents matter? Examination under TBFCC vs. UCP600? Should the examinations be done by the same person?

• Wing Fai: LCs used to pay but no goods delivered: What should an issuer do to check?

• What are customers doing to circumvent Compliance?

• False B/Ls issued by NVOCCs

• What tools are banks using?

Americas Annual Survey of LC Law & Practice - Day 2 -

3:15-5:30 LC Cases: Key Issues Litigated in 2017 • ACR: How choice of law can affect the limitations/prescription period

• China Construction Bank: the Impact of LC Fraud on a negotiating bank discounting accepted bills of exchange under LCs

• Deutsche Bank: Must a confirming bank demonstrate payment on a TT Reimbursement Clause?

• Indofric: a report as to why a bank would litigate a case where the limitations period had run.

• Jiangsu: Lessons from an unworkable LC

• Kolmar: Enforcement of a Singapore judgment by a Chinese court

• Sincore: When forged documents do not matter

• So Sau: Does the issuer have an obligation to counsel applicant? What if it does so? What does a bank need to know (or not know) about trade terms?

• Taurus Petroleum: arbitration and assignment of proceeds

• Toyota Tsusho: Post Honour Remedies for a forged signature

5:30-6:00 Summary of Critical IssuesCritical issues regarding law and practice will be summarized and final comments solicited.

2:45-3:15 Networking Break

1:45-2:45 Revitalizing the LC • The Problem: Too many discrepancies are causing users to abandon LCs for

open account.

• The Features and Viability of two Potential Solutions will be discussed

• The Expedited LC (XLC) and the Digital LC

Invited Panelists

Mike AVIDON is a partner in Moses & Singer LLP, a New York City law firm, where he co-chairs the Banking and Finance Group.

Buddy BAKER is VP of the Investment Banking Division at Goldman, Sachs & Co.

Jim BARNES practices law in the Chicago office of Baker & McKenzie LLC.

James BYRNE is the Director of the Institute of International Banking Law & Practice, Inc.

Christopher BYRNES is Executive Editor of the LC industry’s monthly journal publication, Documentary Credit World.

Peter CARSON is a partner in the Finance & Bankruptcy Practice Group at Sheppard Mullin’s San Francisco office.

Lisa CHIN is SVP and US FCC Head of GTRF – Wholesale of Financial Crime Compliance at HSBC Bank USA, N.A, in Chicago, IL.

John CITROLA is VP of Trade Services Risk Management with Wells Fargo Bank NA inCharlotte.

David CLEMENTS is president of Quality Letters of Credit, Inc.

Paula GREAVES, CDCS, is SVP & Global Policies & Procedures Technical Consultant, Global Trade Operations, at BAML in Seattle.

Saibo JIN is a lawyer, litigator, and arbitrator of the PRC, and is an attorney with the Jincheng Tongda & Neal Law Firm of Beijing.

Carter KLEIN is a partner at Jenner & Block LLP where he has practiced for the past 42 years in the areas of financial services, Uniform Commercial Code, credit enhancements and commercial law.

Walt LEWANDOWSKI is a Director overseeing the North America Trade Services Products, and Global Product Manager of Global Trade Services at Citi.

Robert MARCHAL is a Standards/BusinessAnalyst at SWIFT responsible for development and maintenance of Trade Finance Standards:

Rick MARTINEZ is a Partner at Hogan Lovells LLP in New York.

Vincent M. MAULELLA has over 30 years experience in banking, specializing in operations, risk, product and project management of businesses dedicated to facilitating and financing international trade.

Dennis NOAH is a retired senior international banking officer and was employed by three different banks during his 39-year career.

Paul M. RODER is a partner in the Banking and Finance practice group of Moses & Singer LLP, a New York City law firm.

Glenn RANSIER is SVP Head of Documentary Trade and Standby Letters of Credit at Wells Fargo.

Rita RICCI is Global Head of the Trade Expertise Desk of BNP Paribas with over 35 years of experience in trade finance operations.

Invited Panelists

Panelist participation subject to change. No endorsements of any sort by organizations are made or implied.

Mary ROSEN is Senior Counsel (Capital Markets International) in the law department at Wells Fargo Bank.

Donald R. SMITH is President of Global TradeAdvisory, Ltd., providing services to firms involved in international trade, typically importing and exporting companies and banks.

Dan TAYLOR is principal of DLTAYLOR Consulting, LLC, and Senior Advisor to the ICC Banking Commission Executive Committee.

Heather VOGEL, CSGP, is an officer and department lead of Trade Operations, at Fifth Third Bank, Cincinnati, OH.

Charnell C. WILLIAMS is a Director and Citi’sGlobal Transactions Services Product Manager, responsible for global risks, controls, and deployment of AML processes.

Host Sponsor

Wells Fargo is honored to once again serve as the host sponsor of the Institute of International Banking Law & Practice’s Annual Survey of LC Law & Practice and support this vital industry forum for addressing key issues in the world of letters of credit.

For more than 160 years, Wells Fargo has been guided by a principal value of being a trusted financial partner. Our corporate customers that buy and sell internationally rely on our experience, financial resources, online trade platform, and extensive correspondent banking network to help them effectively manage and grow their global business. For financial institutions, we provide trade services and solutions to help them satisfy the needs of their international trade customers.

Letters of credit have always been a core trade product for Wells Fargo, and over the years we have been an innovator and leader in letter of credit technology applications, such as the first U.S. bank to provide letters of credit initiation via the internet, and the first U.S. bank to offer corporate-issued (private label) letters of credit. Today, we stand as the second largest issuer of standby letters of credit in the U.S., and we continue to grow (issuance data reported in Documentary Credit World, Nov/Dec 2017).

Most importantly, we are proud to support our customers around the world, helping them capitalize on opportunities and compete more effectively in the international marketplace.

Moses & Singer LLP provides legal services to a broad array of clients, including prominent banks, corporations, individuals and families from our New York City office. Attorneys in our Banking and Finance Practice Group represent major money center banks and other financial institutions in all phases of lending and financing, both domestic and cross-border, secured and unsecured, bilateral or syndicated.

Moses & Singer regularly represents major banks and other financial institutions in complex matters involving trade finance, supply chain finance and letters of credit, including litigation and DOCDEX proceedings. The firm’s clients are issuers of commercial (documentary), direct-pay, and standby letters of credit, as well as standby bond purchase agreements, commitments to honor or negotiate documents, bank guarantees, bank payment obligations (BPOs), and committed lines of credit. We also represent clients in structured transactions supported by direct loans made, and guarantees and insurance policies issued by, agencies, development finance institutions, and multilateral investment banks, including OPIC, Ex-Im Bank, EDC and IADB.

The firm is proud that one of our partners, Michael Evan Avidon, is at the forefront of letter of credit law and was a leader in the most recent revision of the Uniform Commercial Code’s letter of credit provisions (UCC Article 5) and the drafting of the International Standby Practices (rules for standby letters of credit) as well as serving on the Consultative Group for the International Chamber of Commerce’s Uniform Rules on Bank Payment Obligations (URBPO).

In a world of giant, multi-office law businesses built on associate leverage, we believe Moses & Singer offers a difference. That difference is the attention of leading practitioners with the experience and knowledge to provide our clients creative, cost effective, result-oriented representation. For more information about Moses & Singer LLP, including the full range of our practices and the many industries we serve, please visit www.mosessinger.com.

Co-Sponsors

Coastline Solutions is a technology partner of the ICC responsible for the delivery of online training and information services. Banks, traders, logistics companies and law firms from over 100 countries use these services to save time, reduce costs, and keep their staff up to date with the latest international trade practices. Coastline’s services include:   ICC Digital Library – Trade Finance ChannelCoastline is ICC’s partner in the development and delivery of all of ICC’s Trade Finance publications through the ICC Digital Library (formerly DC-PRO).Contents:ICC trade Finance RulesICC OpinionsICC Docdex DecisionsIIBLP Legal Case SummariesDiscussion ForumNewsArticles on Trade FinanceAnd more… Online Training: • TBFC: Trade Based Financial Crimes training• ISBP Online: Comprehensive training in the revised ISBP 745• Collections Online Training: Comprehensive training in collections and URC 522• Mentor 600: Comprehensive training in letters of credit and UCP 600• DC Master: Advanced training in letters of credit• ISP Master: Advanced training in ISP98 and independent undertakings• URDG Master: Comprehensive training in Demand Guarantees and URDG 758• Incoterms® 2010 Online Training: Online Training in Incoterms® 2010• ICC Arbitration: Online Training in ICC Rules of Arbitration• Going Global - ICC Training on Trading Internationally Available in English, Spanish and Portuguese• URBPO Online Training: Online training in the new BPO Rules

Contact: www.coastlinesolutions.com

Co-Sponsors

Co-Sponsors

Documentary Credit World (DCW) is the world’s only monthly journal dedicated to the field of letter of credit law and practice. Published in partnership with BAFT, DCW is linked to the most important players in the industry to bring its readers valuable information and the latest news of developments affecting their LC operations and business. From its focus on new rules and regulations involving commercial and standby LC practice to its regular discussion of recent court cases, DCW covers a host of topics and is essential for industry professionals. In addition to individual subscriptions, licenses for groups are available. To view our latest issue’s Table of Contents visit www.doccreditworld.com or for more information, contact DCW at info@ doccreditworld.com

www.georgemasonjicl.org

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CONTINUING EDUCATION CREDITS

Annual SurveyCDCS: 13 CPDs AwardedCSGP: 7 CEUs Awarded

CLE: Credits Pending

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